please help! CTF

neon3008

hi my youngest daughter was born after september 2002 so she recieved the £250 voucher but my eldest daughter was born before spet 2002 and i would like to set up a simular account for her, i have £500 to invest can someone please advise me to the best account to open for her?

martinman3

If you mean an equivalent to a Cash CTF then see this thread
http://forums.moneysavingexpert.com/showthread.html?t=1077199
The rate on the Chorley BS account is higher than instant access child accounts because there are no withdrawals allowed before the age of 18 just like a CTF.

Make sure you fill in a R85 form to receive the interest gross.

If you mean an equivalent to a Stakeholder CTF then you should see an IFA about an alternative to a CTF.

baby_boomer

Hi Neon and welcome to the site.

Chorley Foxley Fund a/c is set up to be the same interest as its CTF a/c.

This puts it way above any children's accounts @ 6.75% so it's well worth a look (although you are tied in to age 18 and Chorley or whoever takes it over in the future might reduce the rate). So perhaps it's better value for the "older" child.

Not that I bother with children's accounts for my children's money since they pay such poor interest.

My child's savings are currently earning over 7% in "adult" accounts which don't have the restrictions of the otherwise excellent Chorley account. However it would be more challenging to match these rates now that future interest rate expectations have recently fallen.

neon3008

baby_boomer wrote: »

Hi Neon and welcome to the site.

Chorley Foxley Fund a/c is set up to be the same interest as its CTF a/c.

This puts it way above any children's accounts @ 6.75% so it's well worth a look (although you are tied in to age 18 and Chorley or whoever takes it over in the future might reduce the rate). So perhaps it's better value for the "older" child.

Not that I bother with children's accounts for my children's money since they pay such poor interest.

My child's savings are currently earning over 7% in "adult" accounts which don't have the restrictions of the otherwise excellent Chorley account. However it would be more challenging to match these rates now that future interest rate expectations have recently fallen.

great thankyou for the advise perhaps you would be so kind as to recommend an adult saving account earning over 7% as this seems to be the best option for my daughters money.

p.s i dont want to be tied to monthly insallments just deposit the £500 and leave it be till she`s 18/21.

baby_boomer

Unfortunately almost all the 7%+ accounts have now disappeared - I was hoping that National Counties' 7.11% Bond might be open to under 18s but it's not .

But you can still go for Northern Rock's 5 Year Bond @ 7% to 2013. Your money is covered by the usual savers' guarantee and NR is currently being run by the government.

Otherwise Chorley BS @ 6.75% is therefore about the best.

If you don't like being at the mercy of Chorley's interest rate policy then the following are available:

Derbyshire 1Yr Bond @ 6.7% from £100
Nationwide 1 Yr Bond @ 6.5% from £1
Nationwide or Principality 2 Yr Bonds both @ 6.4% & both from £1

These all comfortably beat the current "children's accounts, but there will be a form to fill in to renew at the end of the term. This could be another reason, apart from the 7% rate, to go for the Northern Rock 5 Year Bond.